Ben Packham – Indonesia says it doesn't spy on Australia; but it did once, according to a former Indonesian intelligence chief.

In a 2004 interview, retiring Indonesian intelligence chief General Abdullah Mahmud Hendropriyono said his agency tapped Australian civil and military communications and politicians phone calls. It also made unsuccessful attempts to recruit Australian spies, he said.

General Hendropriyono, who headed the Badan Intelijen Negara under president Megawati Soekarnoputri's government, said it was well known both sides tapped each other's communications during the East Timor crisis.

"We want to know what is really discussed about us," he told Nine's Sunday program. "We can say this is a public secret. You know, secret but the whole public knows. This is quite common intelligence activity."

General Hendropriyono said he presumed Australia did the same thing to Indonesia. "She is silly if she doesn't do that, you know."

He said Indonesian intelligence had "almost, but not yet", been able to recruit Australian assets for of supply confidential information. General Hendropriyono claimed the spying had ended because Indonesia and Jakarta now faced a common enemy in global terrorism.

Tony Abbott yesterday played down allegations Australia eavesdropped the mobile phone calls of Indonesian President Susilo Bambang Yudhoyono, saying "all governments gather information".

But Indonesian Foreign Minister Marty Natelegawa issued a blunt rebuttal. "Well I have news for you. We don't do it. We certainly should not be doing it amongst friends," he said.